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Today’s Evening News: Netflix Charges More, Bets Bigger
5:51 pm
Netflix (NFLX 0.50%) is raising prices across all tiers, with plans increasing by $1 to $2 per month and add-on member fees also climbing. The move follows a January 2025 hike and supports a growing content budget -- expected to hit $20 billion in 2026 -- as the company expands into live events and new formats. Management is betting that higher pricing and a projected surge in ad revenue will help drive 2026 revenue toward $50 billion-plus. Shares were up 1.13% on Thursday.
- Commanding of the remote: In the Moneyball Hidden Gems Primary database, Netflix holds a Superscore of 89 and an 80 for Command, reflecting durable competitive advantages and steady intellectual property (IP)-driven growth. Translation: pricing power -- and room to exercise it.
- Ads enter the spotlight: Netflix expects ad revenue to roughly double in 2026, shifting part of the growth story beyond subscriptions.
A New Trend in AI is Emerging: Efficiency
5:18 pm
The approach to AI so far can be best described as using brute force to make things happen. It’s been effective so far, but the approach starts to run into problems when the numbers get really big. Thankfully, some new developments in AI could help alleviate that challenge. Matt, Jon, and Tyler discuss how Google and Arm Holdings (ARM +14.76%) are advancing AI efficiency. Plus, social media’s bad week in court and the mailbag.
Tyler Crowe, Jon Quast, and Matt Frankel discuss:
- Meta and Alphabet losing watershed social media cases
- Is a “tobacco moment” as bad as it sounds?
- Advancements in AI efficiency
- Mailbag: Auto invest or buy the dip?
🎧 The Motley Fool Money podcast drops daily after the bell! Listen on Apple Podcasts, Spotify, or other podcast platforms—or check out the Fool's podcast feed.
Closing Bell
4:06 pm
Stocks fell as oil surged back above $100, with the Nasdaq nearing correction territory and the Dow dropping about 470 points. Rising crude prices tied to Middle East tensions pushed yields higher and pressured equities, especially tech. Mixed signals from U.S. and Iranian officials have kept markets volatile, with investors increasingly pricing in a prolonged conflict and sticky inflation risk tied to energy.
- Oil’s domino effect: Higher crude feeds inflation fears, lifting bond yields and tightening financial conditions—bad news for growth stocks.
- Markets betting on a bluff: Some investors think harsh rhetoric masks progress in talks—but if wrong, energy and volatility could climb further.
ADMA Craters On Revenue Doubts
3:45 pm — ADMA -16.77%
By Seth Jayson
Team Rule Breakers
Not a boring week. A short seller showed up on Tuesday alleging that ADMA Biologics' (ADMA +1.63%) revenue growth is basically an inventory-stuffing mirage, the stock cratered something like 47% in four days, and the company’s response amounted to “that report is speculative and wrong” without getting into specifics — which didn’t quench the fire. Cantor Fitzgerald downgraded it the next morning. The actual Q4 numbers from last month were fine, but nobody cares about last quarter’s numbers when someone’s questioning whether the numbers are real.
Read the report here, if you’d like.
NASDAQ: ADMA
Key Data Points
Adtech Darling AppLovin Keeps Falling
3:01 pm — APP -10.15%
AppLovin (APP 1.29%) fell nearly 10% today, extending a six-month slide of roughly 38%, with no company-specific news driving the move. Instead, macro pressures—including rising recession odds tied to Middle East conflict and sticky inflation concerns—are weighing on high-growth software names. At the same time, investors remain uneasy about how artificial intelligence could reshape the adtech landscape, even after AppLovin posted strong recent results with rapid revenue and profit growth.
- Macro Overhang Builds: Rising oil prices and inflation fears are pressuring risk appetite, particularly in higher-multiple tech stocks.
- AI Uncertainty Lingers: Despite strong execution, investors are still debating whether AI will enhance or erode AppLovin’s competitive position.
Coupang Leans Into AI With Nvidia
2:46 pm — CPNG -3.70%, NVDA -3.70%
★ NVDA is recommended in Hidden Gems and in Stock Advisor (Team RB) as a Foundational Stock
Coupang (CPNG 0.34%) is partnering with Nvidia (NVDA +4.30%) to build an “AI factory” aimed at optimizing its logistics and e-commerce operations. The effort centers on Coupang Intelligent Cloud, where AI is already improving efficiency—chip utilization has reportedly jumped from 65% to 95%. While shares initially rose on the news, they’ve slipped back below $20 amid broader market volatility.
- Efficiency Engine: AI-driven logistics could lower costs and speed delivery, key advantages in a scale-driven e-commerce model.
- Margin Story Emerging: With core EBITDA margins already near 8%, incremental AI gains could push profitability into double-digit territory over time.
NYSE: CPNG
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Seth Jayson: EPAC is Solid, But Not Stirring
2:35 pm — EPAC -8.03%
By Seth Jayson
Team Rule Breakers
Earnings week for the hydraulic tool people. Enerpac (EPAC +0.06%) dropped Q2 numbers last night and held its call this morning — product sales grew 6% organically, which is their best showing in ten quarters, while the services business in Europe continued to shrink and needed a restructuring charge to get costs in line. Adjusted earnings came in flat year-over-year at 39 cents, basically matching estimates, and revenue beat modestly. They narrowed full-year guidance instead of raising it, which tells you management is being careful rather than exuberant. Not a quarter that changes anyone’s thesis. The interesting bit is a new five-year North Sea oil and gas contract and a small acquisition that fills a product gap, both of which are future-looking. The stock sits well below its 52-week high, so the market has not been excited for a while now.
NYSE: EPAC
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Beam Has Good News, Raises Doubts
1:30 pm -- BEAM +2.6%
By Karl Thiel
Team Rule Breakers
Beam Therapeutics (BEAM 10.11%) has been on the move recently, and today, it reported some encouraging phase 1/2 data for its drug BEAM-302 in alpha-1 antitrypsin deficiency (AATD). The data was optimistic enough that the company is moving directly into a pivotal trial later this year. If it gets an accelerated approval pathway, it could be ready for an FDA submission as soon as late 2027.
That's seemingly good news, but the stock actually ticked slightly lower on the announcement. Why is that? It most likely comes down to two main reasons.
NASDAQ: BEAM
Key Data Points
Today's Lunchtime News
1:40 pm -- AAPL +0.7%
Apple (AAPL 0.85%) added four new partners -- Bosch, Cirrus Logic (CRUS +0.82%), TDK, and Qnity Electronics (Q +3.10%) -- to its American Manufacturing Program Thursday, committing $400 million through 2030 to manufacture components domestically. The expansion is part of Apple's broader $600 billion, four-year pledge to U.S. manufacturing announced alongside President Trump in August 2025.
- What gets made where: TDK will manufacture iPhone camera stabilization sensors in the U.S. for the first time. Bosch will produce chips for crash detection at Taiwan Semiconductor's (TSM +5.08%) facility in Washington state. Cirrus Logic will develop Face ID semiconductors at GlobalFoundries' (GFS +0.41%) New York fab. Apple has already sourced more than 20 billion U.S.-made chips from 24 factories across 12 states since the program launched.
- Tariff context: Apple has absorbed roughly $3.3 billion in tariff costs since Trump's trade policies took effect, with CEO Tim Cook choosing to eat the expenses rather than raise prices. Last month the Supreme Court struck down a significant portion of Trump's tariff agenda, which could reshape Apple's cost outlook.
Generative AI Reshapes the C-Suite
12:30 pm -- KO -0.1%, WMT -0.2%
The rise of generative AI is redrawing the American C-suite as veteran leaders step aside for tech-native successors. Coca-Cola (KO +0.46%) CEO James Quincey announced his departure Thursday, citing a "huge new shift" in technology that requires a "completely new transformation." This follows a similar move by former Walmart (WMT 1.60%) chief Doug McMillon, who admitted he "couldn't finish" the massive AI transition required for the next decade of retail. As Quincey hands the reins to COO Henrique Braun and Walmart elevates John Furner, investors are seeing a clear signal: the complexity of "agentic commerce" is now a primary driver of corporate succession planning.
- The Agility Mandate: Outgoing leaders are explicitly prioritizing "energy" and "speed" over tenure, signaling that traditional retail and beverage moats are no longer enough to survive the AI wave.
- Symbolic Tech Pivots: Walmart’s recent move to the Nasdaq and Coke's focus on AI-driven supply chains suggest these legacy giants are desperate to be valued as technology platforms rather than just consumer staples.
Mortgage Rates Hit Six-Month High
12:35 pm
U.S. mortgage rates surged to a six-month high of 6.38% this week, according to Freddie Mac. The four-week climb reflects the inflationary pressure of the Middle East conflict, which has driven oil prices up 30% since late February and sent Treasury yields higher. This spike directly undercuts the Trump administration's efforts to lower costs via expanded mortgage-backed security purchases by Fannie Mae. With the critical spring selling season beginning, the sudden reversal from sub-6% rates threatens to stall volume for major homebuilders and lenders as affordability metrics deteriorate under the weight of "war-premium" inflation.
- The Yield Curve Connection: Because mortgage rates track the 10-year Treasury, the "higher-for-longer" narrative fueled by energy costs is effectively neutralizing government attempts to subsidize the housing market.
- Spring Season Cooling: Investors in residential REITs and mortgage originators should watch for a significant drop in application volumes as potential buyers are priced out by the 16-basis-point jump in just seven days.
Costco's Energy Drink Jolts Celsius Shares 15%
11:15 am -- COST +0.8%, CELH -0.2%
By Sanmeet Deo
Team Rule Breakers
The beverage market recently experienced a significant jolt as Costco (COST 0.32%) introduced its Kirkland Signature energy drink, a move that sent Celsius Holdings (CELH +1.95%) shares tumbling roughly 15% this week. By offering a 24-pack of its 200mg-caffeine sparkling drink for $16.99 -- a staggering 55% discount compared to Celsius's $37.99 -- Costco is directly targeting "inflation-weary" shoppers. This "look-alike" strategy deliberately mimics Celsius's aesthetic, fruit-forward flavors and caffeine profile to capture immediate attention.
Historically, private-label brands have successfully disrupted commodity-driven beverage categories like bottled water, milk, and basic juices, where price is the primary differentiator and brand attachment is low. However, the energy drink sector is a different beast, defined by intense brand loyalty, "lifestyle" positioning, and a "fake health effect" that consumers are willing to pay a premium for.
Is Social Media Liability Expanding?
10:35 am -- GOOG -1.3%, META -4.2%
Alphabet (GOOG +1.35%) and Meta Platforms (META +2.48%) faced a sharp reversal Thursday after a Los Angeles jury found YouTube and Facebook liable for harm to a minor. The $3 million compensatory damage award marks a first-of-its-kind verdict, potentially stripping away the broad legal immunity social media platforms have historically enjoyed. This legal reckoning comes at a vulnerable time for the sector, as investors weigh the cost of increased moderation and potential algorithm overhauls against the backdrop of an already volatile market.
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The Liability Floodgates: This ruling sets a precedent that could trigger thousands of similar lawsuits, transforming platform safety from a PR concern into a recurring balance sheet liability.
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Algorithmic Accountability: If courts continue to hold platforms responsible for automated content delivery, both firms may be forced to choose between lower user engagement and escalating legal settlements.
Top of the Morning
10:25 am
By Emily Flippen, CFA
Team Rule Breakers
As tensions continue to rise in the Middle East this week, investors may be asking fair questions about what the second-order impacts may be from the war in Iran. While no one can claim to know what will happen with the conflict, one thing is clear: with Brent crude swinging between $100 and $120 a barrel over the past few weeks, gas prices are likely to stay high for the foreseeable future. And high gas prices have sizable implications for more than just energy companies.
9:40 am -- BRZE +4.4%
By Tim Beyers
Team Rule Breakers
Shares of Braze (BRZE +3.61%) soared close to 20% yesterday on better-than-expected top line results and a promising forecast. And yet more improvements are needed if this company is to deliver for shareholders over the long term.
Let's start with the good news. Revenue jumped 27.9% to $205.2 million, beating expectations of $198.22 million, according to S&P Global Market Intelligence. Cash from operations roughly doubled over the full fiscal year, to $71.4 million. Braze is starting to build some financial muscle.
Trouble is there's a lot more work to do. Building a real-time messaging platform for marketing and customer engagement isn't cheap. Operating losses widened in both the fourth quarter and the full fiscal year.
Rising R&D expense (+34%) contributed heavily to those losses. Getting customers to commit was costly too. Braze earned $3.24 in fresh revenue for every incremental $1 of investment in sales and marketing in fiscal 2026, down 6.4% from $3.46 in fiscal 2025.
Reversing that trend permanently is key to generating the cash flows that will power the returns shareholders crave.
NASDAQ: BRZE
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Opening Bell
9:35 am
The Dow fell 233 points Thursday as Brent crude futures jumped 4% to over $106, erasing recent optimism. Market volatility spiked after President Trump warned Iranian negotiators to "get serious" before a looming five-day deadline, stating there would be "no turning back." While the S&P 500 and Nasdaq shed 0.8% and 1.2%, respectively, Gulf nations issued a joint condemnation of strikes on energy infrastructure, further tightening global supply. Investors are currently weighing whether Iran's public rejection of U.S. proposals is a "smokescreen" or a genuine signal of prolonged conflict that could keep West Texas Intermediate above $93.
